Miami Beach real estate is being watched closely by the rest of the country because it keeps beating records and many think it's another real estate bubble. But the numbers may surprise a lot of you because the waterfront luxury market has remained strong but has not appreciated at a fast speed from last year as many hoped. I can even venture to say that the growth and appreciation in the Miami Beach waterfront real estate market was conservative in 2013. There are currently 153 Miami Beach waterfront homes for sale right now ranging from a $549,000 North Beach home, to the previously JLo owned $40 Million North Bay Road home. Although Miami Beach homes remain extremely desirable by locals as well as foreigners, the stable numbers may be a relief for many that remain skeptical. The median listing price for a Miami Beach waterfront home is currently $5.5 Million. Out of the 120 waterfront homes sold in 2013, the median sold price was $2.185 Million (compared to $2.8 Million in 2012). Because real estate is local in nature and I don't like giving you generalized figures for all of Miami Beach that may ultimately mean nothing to you, let's look at the Miami Beach real estate market by island.
Star Island Home Sales
1 Star Island waterfront homes sold – located at 43 Star Island Dr - selling at $1,486 per square foot at $16.5 Million. This Star Island estate has a main house with over 11,000 sq.ft. of living space, and 2 separate guesthouses on a 48,266 sq.ft. lot with over 200' of water frontage and docking.
Palm Island Home Sales
8 Palm Island homes sold on the water - highest sale at $10,625,000 for newer construction home located at 130 Palm Ave. with 7,940 sq.ft. of living space, 6 bedrooms / 8 bathrooms and 1 half bath, sitting on a 30,000 sq. ft. lot with 100 feet of water frontage. The average price per square foot for Palm Island homes coming in at $1,004 which is slightly lower than 2012's average of $1,211. Check out this beauty that sold for $7,431,750 in June of 2013- formerly home to Al Capone and totally renovated. The home sits on a 30,000 sq.ft. lot with 100' of water frontage, over 6,000 sq.ft. of living space and separate cabana. It had been originally listed for $9.95 Million in 2012 and is now back on the market for $8.9 Million after selling for $1,218/sq.ft.
Hibiscus Island Home Sales
2 Hibiscus Island homes sold on the water –one for $8 Million (pictured below), located at 432 S Hibiscus, with bay and downtown Miami views and the other one for $3.2 Million at 151 N Hibiscus Dr. Bringing the average price per square foot for Hibiscus Island in 2013 to $967, compared to $1,099 in 2012.
Venetian Islands Home Sales
There were 13 Venetian Island waterfront homes sold – prices ranging between $2.775 and $14 Million, with an average price per sf of $965 compared to 2012's average of $804. The highest sale was for Villa Fendi at 1 E Dilido Dr, super contemporary new construction, with media room that doubles as own private nightclub. The home was originally listed for $14.9 Million in October of 2011.
Sunset Islands Home Sales
There were 12 Sunset Island homes sold on the water – prices ranging between $2.9 million and $15.45 Million. The average price per sq.ft. coming in at $1,029 compared to $976 in 2012. The highest sale was for the home located at 2555 Lake Av (Sunset Island II), that was marketed as having been owned by "William Pawley, whose son was engaged to legendary Elizabeth Taylor. The famous couple spent many romantic times at the property, enjoying countless hours by the pool, under the brilliant sun, and later, under the soft Miami moonlight" << gotta love Miami celebrity homes! The home was renovated - with 7 bedrooms, 9 bathrooms and 1 half bath, over 9000 sq.ft. of living space, 35,100 sq.f.t lot and 150' of water frontage.
North Bay Road Home Sales
There were 5 North Bay Rd waterfront homes sold this year. Their prices ranging between $30 to $3.25 Million and averaging $976 per sq.ft. compared to $964 in 2013. The highest sale was for A-Rod's Miami Beach home, an ultra modern estate with almost 20,000 sq.ft. of living space, 275' of open bay frontage, complete with interior batting - located at 4358 N Bay Rd and selling for $30 Million.
This is also where Matt Damon's Miami Beach home is and is currently for sale for $18,999,000.
La Gorce Island Home Sales
There were 2 waterfront La Gorce Island homes sold. One for $30 Million and the other for $13.75 Million and averaging $1,658 per sq.ft. compared to $908 in 2013 < talk about a HUGE jump! The highest sale was Castello del Sole, an Italianate estate with 349' of open bay water frontage, almost 17,000 sq.ft. of living space, 3 docks, lighted tennis court, tiki bar, Versace furniture, double kitchen, rotunda ceiling, library, theater, safe room, 5-car garage and 70,913 sq.ft. lot - nothing humble about this magnificent property.
Allison Island Home Sales
There were 2 Allison Island homes sold on the water in 2013. Their prices ranging from $8.6 Million to $3.22 Million with an average price per square foot of $664, compared to $685 in 2013. The highest sale was for the new construction (from 2011) located at 6633 Allison Rd which was the highest sale in 2012, selling then for $8,325,000 and again in December of 2013 for $8,600,000. That's a nice profit for holding the house for 12 months.
North Bay Island Home Sales
There were no waterfront homes sold in N. Bay Island
Normandy Island Home Sales
There were 16 waterfront homes sold in Normandy Island. They ranged in price between $740,000 and $3.02 Million for the mid-century modern (featured in our Mia-Mod Homes series), bay front home located at 1001 N Shore Dr – with 5,000 sq.ft. of living space, 5 bedrooms, over 16,000 SF of land and 95 feet of water frontage. The average price per sq.ft. in Normandy Island coming in at $444, compared to $346 in 2012.
Biscayne Point Home Sales
22 Biscayne Point waterfront homes sold in 2013 ranging between $550,000 for a short-sale , to $3,425,000 for the home located at 1651 Cleveland Rd. This completely remodeled 2-story home has 4,647 sq.ft. of living space, 11,250 sq.ft. lot, has 6 bedrooms, 5 bathrooms with new dock and boat lift and 75' of open bay water frontage. The average price per sq.ft. in Biscayne Point increasing to $450, compared to $393 in 2012.
Stillwater Island Home Sales
5 Stillwater Island waterfront homes sold ranging between $750,000 for a fixer-upper, to $1,517,500 for the home at 1151 Stillwater Dr– with 1,816 sq.ft. of living space, 3 bedrooms, 7,500 sf lot and 50 feet of water frontage. The average price per square feet for Stillwater decreasing to $523, compared to $590 in 2012.
Pinetree Drive Home Sales
There were 8 Pinetree waterfront homes sold ranging between $1.5 Million for a short sale at 6165 Pinetree Dr., to $10.2 Million. The highest sale of $10,200,000 was for the remodeled mediterranean mansion built in 1929 with over 14,000 sq.ft. of living space, a 67,000 sq.ft. lot, over 200 feet of water frontage - 2 docks, 3,200 sq.ft. master suite, separate guest house, billiards room, and tennis court. The average price per sq.ft. in Pinetree coming in at $714, compared to $660 in 2012.
Miami Beach's waterfront housing market showed really fast recovery in 2012 but as numbers show, that recovery has remained stable. There were some record-breaking sales that may have skewed the numbers in the past, but it does feel good to reach stability and get away from crazy price increases. What makes our market different that any other is how desirability of a property can change due to:
- location even if in very close proximity from another property
- history of the home - from a picturesque past to celebrity ownership
- how the house sits on a property related to how the sun rises and sets
- architectural design and involvement of top name designers
- water frontage description and views
We also need to keep in mind that 61% of all sales in Miami were CASH as reported in the International Real Estate Congress held by The Miami Board of Realtors this past November. Cash deals lead to fluctuation in sale prices because these are not bound by appraisals of comparable sales by financial institutions, but buyers still do their numbers and do not just throw money at sellers blindly. We are seeing properties listed way above market prices with sellers hoping to become another record sale, but just keep in mind that these are no longer the norm, as evidenced by sales in 2013. Take a look at this graph and see how different islands compare. The big surprise is how La Gorce Island surpassed Star Island by price per square foot. The other change is how there is not much disparity between Palm, Hibiscus, The Venetians, Sunset Islands and North Bay Road. If you are interested in seeing last year's graph, click HERE.
So what will 2014 bring us? We can always expect some record sales, but we see more of a normalized market that does appreciate conservatively. Lack of housing inventory will drive prices up in some desirable areas, so be ready to open your wallets in certain scenarios. And we also expect some unique properties being erected and sold for unexpected prices because we are Miami after all. We remind you that we specialize in luxury properties in Miami Beach and welcome the opportunity to represent you in your next real estate transaction. We keep all of our client communications and inquiries confidential.